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Updated about 5 years ago,

User Stats

3
Posts
1
Votes
Justin Kimmet
1
Votes |
3
Posts

IRR with little to none cash flow

Justin Kimmet
Posted

2 bedroom 1 1/2 Bath Townhome

1100 SF

Purchased property for $83,500

Closing/repairs : $8,000

ARV : $105,000

Rent : $895 per month

(2% Rent growth, 3% appreciation)

Loan : 15 year, 15% down 5.75% Interest rate fixed conventional

1st Year (IRR) 98.60%

Cash flow $295 (Annual)

15th Year (IRR) 17.20%

Cash flow $2,205 (Annual)

30th Year (IRR) 13.98%

Cash flow $11,748 (Annual)

Purchased property at 18 years old, currently 20 and ready to buy second.

Could of cash flowed more if I did 30 year loan, but would like it paid off in 15 years.

Going forward should I try to cash flow more? Or stick with 15 year loans.... or should I do every other 15/30

Thanks for your time, Justin

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